Swift’s CBDC Sandbox Tests Yield Positive Results for Global Transactions

Swift, the global cooperative providing secure financial messaging services, has unveiled the results of the second phase of sandbox testing for its central bank digital currency (CBDC) interlinking solution. The findings underscore the potential of Swift’s connector to revolutionize cross-border transactions and drive innovation in the digital asset space.

In a groundbreaking collaboration involving 38 institutions, including central and commercial banks, as well as market infrastructures, Swift’s solution demonstrated its ability to streamline trade flows, catalyze growth in tokenized securities markets, and facilitate efficient foreign exchange (FX) settlement. Crucially, financial institutions can leverage Swift’s connector to integrate CBDCs and other digital tokens seamlessly into their existing business practices, preserving the continuity of their infrastructure while embracing transformative technologies.

Interoperability lies at the heart of Swift’s strategy for facilitating instant and frictionless transactions. By enabling interoperability between digital currencies and tokenized assets, Swift mitigates the risk of fragmentation arising from diverse technological standards and protocols. The solution has already showcased its capacity to connect CBDCs across different networks and with fiat currencies, empowering cross-border transfers and enhancing liquidity in global markets.

The second phase of sandbox testing delved into more complex use cases, conducting over 750 transactions across simulated digital trade, tokenized asset, and FX networks alongside CBDCs for payments. These experiments unveiled the solution’s potential to expedite global trade, foster trust among counterparties, and substantially reduce transaction costs. Notably, Swift’s connector facilitated atomic delivery versus payment across various tokenization platforms, addressing a critical barrier to the growth of tokenized securities markets.

Looking ahead, Swift plans to expand its solution to support a broader array of emerging digital networks, including platforms for tokenized deposits, in addition to CBDCs. This expansion reflects Swift’s commitment to driving innovation and enabling seamless connectivity in the evolving digital economy.